Outperforming markets

IC and the long-term performance of Japanese IPOs

Christian Nielsen, Gunnar Rimmel, Tadanori Yosano

Research output: Contribution to journalJournal articleResearchpeer-review

5 Citations (Scopus)
1613 Downloads (Pure)

Abstract

This article studies the effects of disclosure practices of Japanese IPO prospectuses on long-term stock performance and bid-ask spread, as a proxy for cost of capital, after a company is admitted to the stock exchange. A disclosure index methodology is applied to 120 IPO prospectuses from 2003. Intellectual capital information leads to significantly better long-term performance against a reference portfolio, and is thus important to the capital market. Further, superior disclosure of IC reduces bid-ask spread in the long-term, indicating that such disclosures are important in an IPO setting. Analysts and investors can attain higher long-term returns by understanding IC.
Original languageEnglish
JournalAccounting Forum
Volume39
Issue number2
Pages (from-to)83–96
ISSN0155-9982
DOIs
Publication statusPublished - 1 May 2015

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Long-term performance
Disclosure
Bid/ask spread
Capital markets
Investors
Disclosure index
Stock performance
Methodology
Cost of capital
Stock exchange
Analysts
Long-term returns
Intellectual capital

Keywords

  • IPO prospectuses
  • Japan
  • Intellectual capital
  • disclosure
  • Valuation
  • Business Models

Cite this

Nielsen, Christian ; Rimmel, Gunnar ; Yosano, Tadanori. / Outperforming markets : IC and the long-term performance of Japanese IPOs. In: Accounting Forum. 2015 ; Vol. 39, No. 2. pp. 83–96.
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Outperforming markets : IC and the long-term performance of Japanese IPOs. / Nielsen, Christian; Rimmel, Gunnar; Yosano, Tadanori.

In: Accounting Forum, Vol. 39, No. 2, 01.05.2015, p. 83–96.

Research output: Contribution to journalJournal articleResearchpeer-review

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